Extra individuals are dipping into their properties as a supply of wealth, knowledge from the Fairness Launch Council reveals.
In Q2 2025 there was a ten% improve in complete lending when in comparison with Q2 2024 (£578m).
This was pushed by new lump sum mortgage prospects taking over common £126,422, or 14% greater than in Q2 2024 (£110,969).
This was regardless of there being a quarter-on-quarter drop in lending, mirroring the contraction within the residential sector.
David Burrowes, chair of the Fairness Launch Council, stated: “Development which continues to be pushed by new debtors accessing higher quantities of housing fairness to handle debt, enhance revenue and assist their wider households.
“Whereas the fairness launch market face a number of the identical challenges seen within the residential mortgage market, new lump sum and drawdown loans are up as prospects make the most of steady long-term home worth progress to assist their later life funds.
“An method which is just prone to develop sooner or later with Fairer Finance predicting that by 2040, over half of UK households (51%) are anticipated to require housing wealth to assist their spending wants in later life and retirement.”
The variety of plans taken out remained static quarter on quarter, however there was a slight improve within the quantity of recent plans (+2%) and complete plans (+1%), when in comparison with 2024.
Additional advances – which make up lower than 7% of the entire quantity borrowed – noticed a 40% 12 months on 12 months improve in plans as present prospects selected to make the most of home worth will increase and extra product flexibilities to borrow extra.
Burrowes added: “The later life lending market will inevitably develop as extra prospects look to their housing wealth to spice up retirement revenue and meet care wants.
“We have to be prepared and resilient to construct upon robust recommendation requirements, product innovation and a dedication to assist a wider vary of shoppers as this gives important alternatives for the market.”
